Understanding Women Micro and Small Business Entrepreneurs in Uganda
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Date
2012
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Investment Climate and Business environment Research Fund Report
Abstract
This report focuses on micro and small entrepreneurial activity among women in Uganda. We presentand discuss findings that were adduced on the entrepreneurial environment, motivations, aspirations andData were sourced from around the country using mixed research methodology. A survey was carried out,in depth interviews were under taken with entrepreneurs and experts on women entrepreneurship. Focusgroup discussions were also conducted in all the parts of the country yielding a very rich data set. Mostof the women entrepreneurs were under 35 years of age and married with a minority having attained aneducation of ordinary level.
The report also shows that the younger women entrepreneurs had the highest number of startup andinfant businesses while their older counterparts had the majority of established businesses. Most womenentrepreneurs are engaged in trade with the majority not employing anyone.The majority had been home makers before starting their current ventures. For those who had previouslybeen in business almost all had previously closed a business. Most of these women entrepreneurs saidtheir businesses were registered in some form, with those that were not registered blaming it on costand the perception of the irrelevance of registration. The majority of the respondents had never received entrepreneurial training. Of those who had, apprenticeship was the most common type of training. An overwhelming majority of the respondents stated that it wasn’t easy to access funds to start or operate their enterprises with at least half of them using savings from a previous business or employment
to start their enterprises. The study also found that the majority of the women entrepreneurs did not belong to any formal or informal association with the main reason being lack of knowledge of any such associations and high subscription fees. Yet those who belonged claimed a wide range of benefits of these associations specifically financial support. Most of the enterprises of the respondents were dependent on rudimentary hand tools. The majority of the respondents started their businesses of their own accord with survival and need to increase wealth as the main reason for startup. Most chose their current line of business because it was either what they could afford or because it was all they knew how to do. With an
overwhelmingmajority asserting thatthey intended to expand their enterprise, it was no wonderthat a large number of the respondents said they wouldn’t give up their business if a job opportunity was presented. Despite this, knowledge of business development services in their communities was said to be lacking. The studyidentifiedchallenges facedbywomenownedenterpriseswhichincludedimproperimplementation of government policies, lack of funding and skills training, absence of BDS-Business development services
and use of rudimentary tools, non-engagement in social networks and discriminatory cultural practices, high cost of doing business and cumbersome registration procedures.
The study advances several recommendations to mitigate the existing circumstances including enlightment of women entrepreneurs on benefits of training and business registration; affirmative action in vocational institutions enrolment and award of government contracts and more interaction between government and women entrepreneurs; development of flexible financial products; improvement of basic infrastructure. Throughout the report case studies of typical micro and small women entrepreneurs are presented and quotes from experts in the field of women entrepreneurship are used to highlight the study objectives.
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Citation
Namatovu, R., Dawa, S., Katongole, C., & Mulira, F. (2012). Understanding women micro and small business entrepreneurs in Uganda. Investment Climate and Business environment Research Fund Report, (01/12).